LOUISIANA CIRCUIT COURT RULES THAT COMBINATION RESIDENCE AND BOMB SHELTER QUALIFIES AS A UNIQUE PROPERTY AND WARRANTS USE OF REPRODUCTION COST LESS DEPRECIATION METHOD OF VALUATION

THE CONDEMNEE CONSTRUCTED A BOMBPROOF RESIDENCE DESIGNED TO WITHSTAND BOTH SEVERE WEATHER HAZARDS AND NUCLEAR ATTACK. THE STRUCTURE TOOK TWELVE YEARS TO BUILD AND WAS EXPROPRIATED TWO YEARS AFTER COMPLETION. BOTH SIDES STIPULATED THE VALUE OF THE ACREAGE TAKEN IN THE EXPROPRIATION. AS TO THE VALUATION OF THE STRUCTURE, BOTH SIDES INTRODUCED REAL ESTATE EXPERTS WHO ADMITTED THAT THE OBVIOUSLY UNIQUE CHARACTERISTICS OF THE RESIDENCE PREVENTED ANY ACCURATE METHOD OF VALUATION INVOLVING COMPARABLE SALES. THE CONDEMNEE INTRODUCED ONE WITNESS WHO QUALIFIED AS A MECHANICAL ENGINEER OF CONSIDERABLE EXPERIENCE IN THE TYPE OF CONSTRUCTION INVOLVED IN THE SHELTER-RESIDENCE. THIS WITNESS CALCULATED IN DETAIL THE REPRODUCTION COST BY CONSIDERING COST OF PARTS, CONSTRUCTION AND OVERHEAD. THE TRIAL COURT ENTERED A VALUATION OF THE RESIDENCE MORE CLOSELY APPROXIMATING THE ESTIMATES OF THE REAL ESTATE EXPERTS. THE CIRCUIT COURT REJECTED THIS RELIANCE ON THE TESTIMONY OF THE REAL ESTATE EXPERTS AND ENTERED A JUDGMENT BASED ON THE FINDINGS OF THE MECHANICAL ENGINEER. THE CASE IS AN EXAMPLE OF THE SCOPE OF REVIEW AVAILABLE TO AN APPELLATE COURT IN A VALUATION PROCEEDING. (STATE, DEP'T OF HIGHWAYS V. CROSSLAND, 207 S.2D 898 (CT. APP. LA. 1968)).

  • Supplemental Notes:
    • No 93, pp 1-3
  • Corporate Authors:

    Transportation Research Board

    500 Fifth Street, NW
    Washington, DC  USA  20001
  • Publication Date: 1969-2

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00200862
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Jul 28 2004 6:00PM